Why Indicators will fail you | Page 13 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Why do indicators not work/work? Why is Forex not truly random? 129 replies

If most indicators are made to fail.. 4 replies

Why Indicators will help you 43 replies

Why You May Fail Going From Demo to Real 4 replies

Why technical indicators and MTS fail... 14 replies

Attachments: Why Indicators will fail you
Exit Attachments

Why Indicators will fail you

  • #241
  • Nov 7, 2008 4:30am Nov 7, 2008 4:30am
Great post man !
It's explained in a soo simple way, but it say basically the truth about how to trade.
  • #242
  • Dec 23, 2008 1:30pm Dec 23, 2008 1:30pm
Quoting eagle4x
I think you are the newbie here. Where did you learn about candlesticks from? No wick and red candlesticks are bearish symbols, not bullish. Besides the first long red candlestick in the upper left corner of your chart doesn't have a wick. If you had underlined that too and included in your trade example, you would have an overall loss, not gain. How long have you been trading candlesticks using your system? How profitable has it been for you? Again, as I stated before, candlesticks are indicators!
The blue and red candles are the colour the broker has as default. And besides, it doesn't matter what colour the candles are, as long as the user is comfortable with them.
Probability Professor
  • #243
  • Dec 23, 2008 4:20pm Dec 23, 2008 4:20pm
Quoting gspajon
An indicator is just that. Most of them lag behind price action because they need the data from closed time periods to produce the "math" result. They cannot predict the future any more than you or I can. But indicators allow us to do something more valuable.

By using indicators and oscillators, we are able to "reorganize" the price information into readilly recognizable patterns. Take a moving average for instance. Look back, as far as you like, and see how many times the price continued up after closing above a given moving average. From...

that was an excellent insight.....this is how it works.....

if u're catching a trade off a support as price action interpret the future and you're wrong, the guy using an indicator might not be in and he wont be wrong.but,if the predicted future by price action is correct and price is intended to move 100pips.....by the close of last candlestick,rsi tells me its oversold,i can still catch some pips from the 100pips......

for my trading style, i use price action to confirm my lovely rsi and bollinger bands....and results have been amazing....understand your indicators, and you'll wake up to live.
  • #244
  • Dec 23, 2008 4:26pm Dec 23, 2008 4:26pm
how i learn price action? i no see indicator MT4 for it
  • #245
  • Dec 23, 2008 5:17pm Dec 23, 2008 5:17pm
Price action is not a built-in indicator, if there is one is a custom indicator. You can check on the forums and you should be able to find one.
  • #246
  • Dec 23, 2008 5:57pm Dec 23, 2008 5:57pm
Quoting Pipwaves
"Why indicators will fail you"

I totally agree - indicators use historic data, they can never predict with any like hood where price movement will go. It's just a gamble. Fundamentals are ruling the markets at the moment... Follow them.
REALLY, Name one fundamental guy that predicted the EUR/USD would fall from 160 to below 130 .................................. especially when fundamentals call for a currency to devalue when the interest rate goes down ................. hMMMMMMMMMMMMMMMMMMMMMMM
  • #247
  • Dec 23, 2008 8:31pm Dec 23, 2008 8:31pm
.....all the fundamental traders who shorted E/U in june/july. the real question is how many technical traders predicted it. this summer, i remember checking the dailyfx guy who predicted the e/u going back past 1.60 based on technicals only. fundamentals move price. they naturally find the right price. TA only follows follows the fundamentals--after the fact. and follows using historical derivatives of derivatives.
  • #248
  • Dec 23, 2008 9:59pm Dec 23, 2008 9:59pm
Most tech traders don't predict.... they react.
Same Whore .... Different Dress
  • #249
  • Dec 23, 2008 10:07pm Dec 23, 2008 10:07pm
Quoting nanningbob
REALLY, Name one fundamental guy that predicted the EUR/USD would fall from 160 to below 130 .................................. especially when fundamentals call for a currency to devalue when the interest rate goes down ................. hMMMMMMMMMMMMMMMMMMMMMMM
Actually in academics the its the opposite, when interest rate goes down that means economy slows down and CB reacted to that (in MP) to stimulate the economy and currency should appreciate.
  • #250
  • Dec 23, 2008 10:50pm Dec 23, 2008 10:50pm
Quoting steelhead
There is no always in trading.
Sage words, people.
  • #251
  • Dec 24, 2008 1:35am Dec 24, 2008 1:35am
Quoting Fkf1019
how i learn price action? i no see indicator MT4 for it
  • #252
  • Dec 24, 2008 2:25am Dec 24, 2008 2:25am
Quoting Fkf1019
how i learn price action? i no see indicator MT4 for it
Ha Ha Ha Ha that's classic
  • #253
  • Dec 24, 2008 8:35am Dec 24, 2008 8:35am
Quoting im7i4z
Actually in academics the its the opposite, when interest rate goes down that means economy slows down and CB reacted to that (in MP) to stimulate the economy and currency should appreciate.
Really hmmmmmmmmmm USA lowers interest rates and price drops like a rock from 160 to under 130. Then USA lowers interest rates again and ........... Oh yeah price shoots up like a star. Good prediction ................ love them fundamentals.

Lets get our heads out of the clouds, the reason people dont use fundamentals is it dont go the way it is suppose to go. Where is there a thread in FF where a fundamental trader has a large following because he says, 'Sell and everyone has been following him sells because he has read the fundamentals and has it right.' I have read fundamental writers and they like talking about how fundamentals yesterday showed this to be true its never tomorrow.
  • #254
  • Dec 25, 2008 9:21am Dec 25, 2008 9:21am
Indicators are perfect... as they are simply math.

However, they are called indicators instead of predictors for a reason...

As for fighting over Fundamentals vs Technicals... don't waste your time. Major news events adjust the viewpoints of traders -- which trumps more and more technical analysis as you go down into the shorter time frames.
nav++
  • #255
  • Dec 25, 2008 10:03pm Dec 25, 2008 10:03pm
Quoting gvroom
Indicators are perfect... as they are simply math.

However, they are called indicators instead of predictors for a reason...

As for fighting over Fundamentals vs Technicals... don't waste your time. Major news events adjust the viewpoints of traders -- which trumps more and more technical analysis as you go down into the shorter time frames.
Spoken like someone that doesn't understand technicals.
  • #256
  • Dec 27, 2008 8:51pm Dec 27, 2008 8:51pm
major news events usually happen after all the proffesionals and institutions know about it. So pretty much useless too. As for indicators they are good tools and do exactly as they are programmed to do, its just how people use them that is in correct. tbh good luck to those people that do use incorrectly and to the people at that conference being fed bullshit. I personnaly dont care if they make a mistake
  • #257
  • Jan 8, 2009 9:23am Jan 8, 2009 9:23am
Just an update I still think Indicators are useless
  • #258
  • Jan 8, 2009 9:35am Jan 8, 2009 9:35am
Quoting Bobalan
.....all the fundamental traders who shorted E/U in june/july. the real question is how many technical traders predicted it. this summer, i remember checking the dailyfx guy who predicted the e/u going back past 1.60 based on technicals only. fundamentals move price. they naturally find the right price. TA only follows follows the fundamentals--after the fact. and follows using historical derivatives of derivatives.
No fundamental trader predicted the drop. I asked in my last post to name one and you said all. I am still waiting for one. Where are you going to find one. As far as techinicals anyone following a MA cross would have picked it up.
  • #259
  • Jan 8, 2009 11:55am Jan 8, 2009 11:55am
Quoting nanningbob
Really hmmmmmmmmmm USA lowers interest rates and price drops like a rock from 160 to under 130. Then USA lowers interest rates again and ........... Oh yeah price shoots up like a star. Good prediction ................ love them fundamentals.

Lets get our heads out of the clouds, the reason people dont use fundamentals is it dont go the way it is suppose to go. Where is there a thread in FF where a fundamental trader has a large following because he says, 'Sell and everyone has been following him sells because he has read the fundamentals and...
Hey I really want to find the way I you said I supposed to go, I would like to learn how to manage the fundamentals in the moment to take decisions with my orders and make predictions about the market, but I really don’t know how to do it. any recommendation?
  • #260
  • Jan 8, 2009 12:02pm Jan 8, 2009 12:02pm
Quoting steelhead
Just an update I still think Indicators are useless
Uselles for trading, but are they useless to spot a divergence? A confirmed divergence tells alot if you know how to read it.
1 trader viewing now